---
type: decision
entity_type: decision_market
name: "Loyal: Liquidity Adjustment — Withdraw and Burn Meteora Pool Tokens"
domain: internet-finance
status: passed
parent_entity: "[[loyal]]"
platform: "futardio"
proposer: "Community members"
proposal_url: "https://www.metadao.fi/projects/loyal/proposal/GXdWao4Cy6EsvvS9atMb1kCPEAFwPXBe5kKCeLDtRJNm"
proposal_date: 2025-12-23
resolution_date: 2025-12-26
category: "treasury"
summary: "Withdraw 90% of tokens from single-sided Meteora DAMM v2 pool and burn them to reduce circulating supply and selling pressure"
tracked_by: rio
created: 2026-03-24
source_archive: "inbox/archive/2025-12-23-futardio-proposal-liquidity-adjustment-proposal.md"
related:
- "{'Loyal': 'Buyback LOYAL Up To NAV'}"
- "Loyal: Buyback LOYAL Up To NAV"
reweave_edges:
- "{'Loyal': 'Buyback LOYAL Up To NAV|related|2026-04-18'}"
- "Loyal: Buyback LOYAL Up To NAV|related|2026-04-19"
---

# Loyal: Liquidity Adjustment — Withdraw and Burn Meteora Pool Tokens

## Summary
Community-initiated proposal to withdraw 90% of LOYAL tokens (809,995) from the single-sided Meteora DAMM v2 pool and burn them. The pool created selling pressure without providing price support. Withdrew 90% (not 100%) to avoid visibility issues with Dexscreener and other apps that don't index the futarchyAMM pool. USDC withdrawn remains in treasury.

## Market Data
- **Outcome:** Passed
- **Proposal Account:** GXdWao4Cy6EsvvS9atMb1kCPEAFwPXBe5kKCeLDtRJNm
- **Duration:** 2025-12-23 to ~2025-12-26
- **Tokens Burned:** 809,995 LOYAL

## Significance
Demonstrates community-driven supply management through futarchy. The 90% withdrawal (not 100%) due to Dexscreener indexing limitations shows the practical constraints FaaS projects face when their primary liquidity is in futarchyAMM pools that aggregators don't yet support.

## Relationship to KB
- [[loyal]] — parent entity, supply management
- [[futardio]] — governance platform

## Full Proposal Text

*Source: metadao.fi, tabled 2025-12-23. Authors: community members.*

**Type:**
**Author(s): community members.**

If passed, 90% of tokens remaining in the [single-sided Meteora DAMM v2 pool](https://www.meteora.ag/dammv2/BGg7WsK98rhqtTp2uSKMa2yETqgwShFAjyf1RmYqCF7n) will be withdrawn and burned. USDC withdrawn will remain in the project's treasury.

### Motivation

As stated by the community members: The single-sided DAMM pool does not provide price support and creates unnecessary selling pressure. Withdrawing and burning the tokens would reduce the circulating supply and result in a better price.

Withdrawing the full liquidity and closing the position would cause visibility issues with some apps and Dexscreener as they don't index Futarchy AMM pool at the moment of writing. Therefore, we propose to withdraw 90% of the tokens in the pool.

**Note from the MetaDAO team:** If, at the time of execution, fewer than 809,995 LOYAL tokens are withdrawn from the Meteora pool, the SPL burn instruction will fail. To prevent that, 50% of the withdrawn tokens will be burned, and the remaining 50% will be held to be burned under a subsequent proposal.

### Specification

- Pool address: *BGg7WsK98rhqtTp2uSKMa2yETqgwShFAjyf1RmYqCF7n*
- Total LOYAL amount: 809,995

### Process

1. Withdraw 809,995 LOYAL tokens remaining in the single-sided Meteora DAMM v2 pool.
2. Execute SPL *burn* instruction.

### Raw Data

- Proposal account: `GXdWao4Cy6EsvvS9atMb1kCPEAFwPXBe5kKCeLDtRJNm`
- Proposal number: 2
- DAO account: `GxpJkPEsPmuRCCTNnfZaDKg4X3gf4ZPgmqgFqtibaPtK`
- Proposer: `ELT1uRmtFvYP6WSrc4mCZaW7VVbcdkcKAj39aHSVCmwH`
- Autocrat version: 0.6